Trade Setup For September 14: Key Factors To Know Before The Opening Bell: 3 Stocks To Buy In Intraday

Indian markets are likely to have a positive start on Thursday as Gift Nifty trades in green. Also, global markets traded higher after US inflation data came in line with forecasts. In the previous session, domestic equities gained momentum as easing in CPI inflation drove bulls across the board. PSU banks were the top gainers, while significant buying was also seen in private banks, realty, consumer durables, oil & gas, pharma and media stocks.

Gift Nifty, formerly known as SGX Nifty, traded at 20,184, up by 38 points or 0.19% at around 7.26 am, on Thursday. The index opened at 20,146 and traded in the range of intraday high and low of 20,187.5 to 20,128 respectively.

Domestic equities will react to US inflation data which was in line with expectations of 3.7% in August 2023. The latest inflation print has created cautious optimism for a pause in key rates in the coming policy from the US Federal Reserve. However, it needs to be noted that US inflation has accelerated for two months in a row.

Surprisingly, India's CPI inflation eased to 6.83% in August 2023, which was also lower than market forecasts of 7%. CPI eased owing to a sharp decline in food inflation to 9.94% from 11.51% which was the highest level since January 2020. In June 2023, CPI inflation accelerated to a 15-month high of 7.44%.

Thursday's Trade Guide:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects the Nifty Spot Index to find support around 19,950/19,900 during the trade session of September 14, while resistance is seen at 20,200/20,250. Further, the Bank Nifty spot index is likely to find support in the range of 45,700/45,650 and resistance is seen between 46,400/46,450.

To investors, Ajit Mishra, SVP - of Technical Research, at Religare Broking said, "We reiterate our positive view on markets and suggest continuing with a stock-specific approach, with a focus on index majors and other heavyweights. Among the sectoral pack, banking, financials and IT hold prominence for further up move so align positions accordingly."

Nifty 50 Support Level:

In his technical view for Nifty 50, Rupak De, Senior Technical analyst at LKP Securities said, The prevailing sentiment remains optimistic, contingent on put writers safeguarding the 19,900 level. A drop below 19,900 could unsettle put writers, potentially triggering market corrections. On the upside, the 20,100-20,150 range is poised to act as resistance. A clear breakthrough above 20,150 might propel Nifty into a sustained upward trend."

Bank Nifty Support Level:

In the case of Bank Nifty, Kunal Shah, Senior Technical and derivative analyst at LKP Securities said, the bulls took charge and dominated the market, resulting in the formation of a bullish engulfing candlestick pattern on the Bank Nifty index. This pattern signifies a potential reversal of the previous bearish sentiment.The lower-end support for the index is now established in the range of 45,700-45,600, serving as a strong cushion for the bulls and providing a crucial level of defense against any downward pressure. Looking ahead, the immediate hurdle on the upside is situated at the 46,000 mark. A successful breach above this level would likely pave the way for further upward momentum, with potential targets at 46,300 and 46,600 levels.

Intraday Stock Picks Today:

Parekh has recommended 3 stocks to buy on Thursday:

- Buy Union Bank of India Ltd at Rs 90.50 with a stop loss of Rs 88 for a target of Rs 98.

- Buy West Coast Paper at Rs 691 with a stop loss of Rs 678 for a target of 725.

- Buy Zydus Life at Rs 643.25 with a stop loss of Rs 632 for a target of Rs 680.

Stock News Today:

Stocks in the news are -- IRCTC, NBCC (India), Vinati Organics, Wipro, Bombay Dyeing and Manufacturing Company, and Venus Remedies.

FII And DII Data:

FIIs and DIIs have shown mixed sentiment for Indian stocks on Wednesday.

The foreign institutional investors (FIIs) turned net sellers by selling Rs 1,631.63 crore in Indian stocks on September 12. However, the domestic institutional investors (DIIs) made a buying of Rs 849.86 crore worth of equity shares.

F&O Ban List:

Under the F&O ban, the exchange added REC Ltd to the September 14 list, while stocks like National Aluminium Company, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, Indian Energy Exchange, Manappuram Finance and SAIL were retained on the list. However, stocks like BHEL and Chambal Fertilisers and Chemicals have exited the list after meeting the criteria.

Securities that have crossed 95% of the market-wide position limit are added to the F&O ban list.

Market Performance for September 13:

On September 13, Nifty settled at 20,070, up by 76.80 points or 0.4% after touching an intraday high of 20,096.90. Except for IT and auto stocks, all other sectoral indices were in green. Bank Nifty surged by 0.9% to settle at 45,909.45, shy of its 46,000 level.

PSU banks were the top gainers, while significant buying was also seen in private banks, realty, consumer durables, oil & gas, pharma and media stocks. Coal India, Grasim, Tata Consumer Products, Bharti Airtel, and Titan were top gainers, while HDFC Life, M&M, Adani Ports, L&T, and Cipla were top laggards.

Further, the Nifty Midcap 100 and Smallcap 100 index surged by 0.19% and 1.02% respectively.

Sensex finished at 67,466.99, up by 245.86 points or 0.4%. Of the total 3,784 stocks that traded on BSE, 2,144 stocks advanced, 1,514 stocks declined and 126 stocks were muted. A total of 148 stocks touched new 52-week highs and 23 stocks struck their 52-week lows.

On Wednesday's performance, Vinod Nair, Head of Research at Geojit Financial Services said, "The domestic indices resumed its upward trajectory despite weak global cues. The cooling of domestic CPI inflation to 6.83% in August and the rise in industrial production data reaffirmed the robustness of the Indian economy. The contraction in the UK economy and the rise in oil prices have created a level of uncertainty in the global market. Also, investors await US inflation data today, which holds global significance as it will provide insights into the Fed's policy outlook."

Global Trends:

Asian shares surged on Thursday as investors anticipated that a small upside in US inflation is unlikely to spark a rate hike from the Fed. The focus shifted to the European Central Bank meeting later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.4% in early trade. While Tokyo's Nikkei soared 0.8% to a one-week high.

Also, as per the Bloomberg report, Australian bond yields fell with US Treasuries, while Japanese bond traders will be closely monitoring a sale of 20-year securities amid speculation the Bank of Japan may take steps to normalize policy.

Notably, both dollar and treasury yields gained before retracting the trend. In Asian trade, the benchmark 10-year treasury yields fell to 4.24%, while the 2-year notes climbed above 5% before pulling back to 4.97%. The focus will be further on upcoming US retail sales and producer price data.

As inflation data met expectations, Wall Street was broadly in green overnight with the exception of the Dow Jones Industrial Average which dropped by 0.20%. On the other hand, the S&P 500 index climbed marginally, while the tech-heavy Nasdaq Composite index outperformed with an upside of 0.3%.

Disclaimer:
The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.